Marico Q1 Update: Modest increase in volume growth on improved demand

WHY IT'S IMPORTANT

Volume trends from key consumer goods companies, which sell everything from hair oil, cooking oils to oats, are seen as an important indicator of consumption patterns in the country.

KEY CONTEXT

Marico makes more than a quarter of its sales from rural India, while rival Dabur brings in almost half of its overall sales from villages and small towns. Both are expected to be key beneficiaries of the recovery in rural demand.

Rural demand, which was dampened in financial year 2024 due to persistently high and consumers tightening their wallets, has been gradually recovering as companies cut prices of their products, as per analysts.

However, that demand has not yet fully recouped.

BY THE NUMBERS

Marico's consolidated revenue in the three-month period grew by a high single-digit percentage, despite the residual impact of pricing cuts in its cooking oils and headwinds in overseas markets, the company said. Its March-quarter revenue had grown 2%.

Its domestic business posted a "modest uptick" in underlying volume growth sequentially, while the international business saw double-digit growth, added.

Marico had posted low single-digit percentage growth or a fall in revenue for eight straight quarters.